Stocks are rising as apparel prices increased in May.
The S&P 500 rose 5 points to 2,081, the Dow Jones Industrial average gained 41 points to trade at 17,722 and the Nasdaq added 13 points to trade at 4,857. The S&P Retail ETF added 31 cents to sell at $41.39.
In economic news this morning, May producer prices increased 0.4 percent, better than the expected 0.3 percent. Core producer prices came in at 0.3 percent , which was also better than the estimated 0.1 percent. The indexes for apparel, jewelry, footwear and accessories retailing increased 4.7 percent. The category for women’s, girl’s and infants apparel was flat. Men’s and boy’s apparel increased 0.2 percent. Apparel wholesaling prices fell 0.4 percent.
Tesla Motors Inc. is partnering with Nordstrom Inc. to open a new gallery in the Los Angeles store. The Tesla shop will be located in the men’s department and will display the Model X SUV. For now, Tesla can only display the vehicle, but has applied for a sales license for the site. The shop will be open through the end of the year. Tesla is commonly seen in high-end shopping malls, so it’s not unusual to see the combination of cars and retail shopping. Nordstrom stock rose by over 2 percent to $37.51.
H&M Hennes & Mauritz AB reported that in May group sales including VAT increased by 9 percent in local currencies. Sales in the second quarter ending in May increased by 5 percent in local currencies versus last year’s quarter. In a research note, Barclays pointed out that H&M numbers were better than clothing sales in Germany, down an estimated 1 percent, but worse than its Spanish rival Inditex who reported a 15 percent gain between May 1 and June 13. H&M is due to report full results for its fiscal second quarter on June 22, and June sales on July 15. The stock was moving higher by 1 percent to 245.60 SEK or $29.46 in today’s exchange rates.
Nike Inc. announced that Craig Zanon has been named vice president, general manager of Nike Global Basketball replacing Michael Jackson who has resigned from Nike. Zanon will report to Jayme Martin, vice president of global categories. Zanon is a 27-year Nike veteran and he will not only lead the basketball group, he will also lead the strategic partnership with the NBA. Nike stock is up over 1 percent to $54.88.